Wall Street's giant paychecks are getting harder to come by. Not only are financial regulators considering tightening up compensation for bankers, but the banks themselves are cutting jobs and running more efficient operations.
Still, "the people who join Wall Street they know the rules of the game before they get started. I don't think it's going to really decrease — anybody who's new, who's coming out of grad school, who wants to work on The Street— I don't think this is going to dissuade them at all," said John Ricco, partner at Wall Street recruiter Atlantic Group, in an interview with CNBC's "Power Lunch"Friday.
His comments come as the National Credit Union Administration proposed a rule on Thursday that aims to increase employee's access to incentive-based compensation from three years to four. The regulating agency argues that some financial institutions failed due to "excessive-risk taking encouraged by incentive-based compensation arrangements, which rewarded senior officials based on the volume of business they generated, regardless of whether the institution subsequently made or lost money on that business."
Still, market watchers remain fearful that if policy doesn't affect job growth on Wall Street, job cuts from the institutions will, as recently banks have been cutting jobs.